The change comes after powers over income tax and some benefits were devolved to the Scottish Parliament.

Bruce Crawford, convener of Holyrood’s Finance Committee, said: “For Parliament’s oversight of tax-raising and spending plans to be really effective there needs to be a shift from year to year scrutiny to a longer-term perspective.

“To that end, the Scottish Government will later this month set out its first-ever Medium Term Financial Strategy (MTFS) - its broad financial plans and projections for the next five years.

“The new process will also see a move towards multi-year budgets that will help public bodies to develop medium-term priorities and to plan more effectively for future challenges.

“Importantly, parliamentary scrutiny will include a greater focus on outcomes rather than spending. This will enable MSPs to better determine whether policy objectives have been met and public spending has been effective.”

He added: “This evening’s endorsement of Holyrood’s new scrutiny arrangement marks the start of a cultural change and the biggest overhaul of the Parliament’s budget process since the start of devolution.”

As well as producing a Medium Term Finance Strategy every spring, the Government will also have to publish a Fiscal Framework Outturn Report each autumn, setting out data for Scottish tax revenues.